SFC Energy (F3C) AI Stock Analysis

• Market Cap: €234.52M
• Dividend Yield: N/A
• Average Volume (3M): 43.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 5.15%
• EPS Growth: -101.58%
• Country: DE
• Employees: 470
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.07
• Shares Outstanding: 17,397,976
• 10 Day Avg. Volume: 43,763
• 30 Day Avg. Volume: 43,351
• PEG Ratio: -0.58
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 57.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €17.20
• Price Target Upside: 27.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: €14.00 ▲(3.86% Upside)

SFC Energy's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet is overshadowed by declining profitability and cash flow issues. Technical analysis indicates a downtrend, with the stock trading below key moving averages and nearing oversold conditions. The unattractive valuation, marked by a negative P/E ratio and no dividend yield, further impacts the score.

Positive Factors

Conservative balance sheet / low leverage

A low debt-to-equity ratio (0.13) and strong equity ratio give SFC durable financial flexibility to fund R&D, product development, and working capital needs without overreliance on external financing. This reduces default risk and supports multi-year commercialization plans in clean energy.

Specialized fuel cell product portfolio

SFC's focused expertise in hydrogen and methanol fuel cells and presence across mobile, backup, and off-grid applications creates structural advantages. Diverse end-markets (military, telecom, transport) and tailored solutions support steady demand and long-term customer relationships as decarbonization trends progress.

Healthy gross profit margin

A ~41% gross margin indicates solid product-level economics from engineering content and specialized components. This margin provides a buffer to absorb sales mix shifts and supports reinvestment in product development and scale-up, assuming management stabilizes operating expenses and drives volume growth.

Negative Factors

Declining net and operating margins

Material deterioration in net and operating margins signals rising operating costs or pricing pressure, undermining sustainable profitability. If margins do not recover, the company may struggle to fund growth and R&D internally, forcing cost cuts or slower commercialization of new products.

Weak cash generation / negative operating cash flow

Negative operating cash flow and a high free-cash-flow-to-net-income ratio reveal poor cash conversion and potential working-capital stress. Persistent cash shortfalls can force external financing, constrain product rollouts, and limit the company’s ability to capitalize on long-term market opportunities despite accounting profits.

Recent revenue contraction trend

A top-line decline interrupts scaling benefits and can erode pricing power and customer momentum. Continued revenue contraction would impede operating leverage, limit margin recovery, and weaken the case for long-term market share gains in competitive clean-energy segments.

SFC Energy Business Overview & Revenue Model

Company Description

SFC Energy AG develops, produces, and distributes systems and solutions for stationary and mobile off-grid power supply based on hydrogen and direct methanol fuel cells worldwide. The company operates in two segments, Clean Energy and Clean Power Management. It offers EFOY Hydrogen 2.5 fuel cells for higher power ranges; EFOY Pro fuel cells for on-board power supply in vehicles, as well as off-grid power supply, such as monitoring systems, measuring stations, and oil and gas applications; EFOY fuel cells, which ensures automatic recharge of the batteries; SFC EMILY for military and security applications; SFC JENNY, a portable fuel cell for military applications; and SFC Power Manager 3G, a portable power distributor and battery charger that enables the soldiers to use various energy sources available in the field, such as hybrid batteries, solar panels, and vehicle power and fuel cells to power devices or charge batteries. The company also provides EFOY ProCube, a mobile and maintenance-free solution for off-grid power supplies; EFOY ProEnergyBox, an off-grid energy solution for weather conditions; EFOY ProEnergyCase, a portable and maintenance-free solution for grid-independent power supplies; EFOY ProCabinet, an insulated outdoor energy solution for remote off-grid power supply; EFOY ProTrailer, a trailer-based energy solution; drives and motor solutions; SCADA and telemetry solutions; and coils and linear drives. In addition, it offers accessories and spare parts, such as fuel cartridges; and mechanical, electronic, and electrical instruments to monitor and control production and logistics processes. The company was formerly known as SFC Smart Fuel Cell AG and changed its name to SFC Energy AG in July 2010. SFC Energy AG was founded in 2000 and is headquartered in Brunnthal, Germany.

How the Company Makes Money

SFC Energy generates revenue through the sale of its fuel cell systems and related products, which are used in various sectors including military, telecommunications, and transport. The company's revenue model is primarily based on direct sales of fuel cells, along with service contracts for maintenance and support. Key revenue streams also include partnerships with companies in the energy and transportation industries, where SFC provides customized energy solutions. Additionally, the company benefits from government incentives and grants aimed at promoting renewable energy technologies, which can further bolster its earnings.

SFC Energy Financial Statement Overview

Summary

SFC Energy demonstrates a mixed financial performance. While the company maintains a strong balance sheet with low leverage, profitability and cash flow generation have weakened. The decline in revenue and profit margins in the TTM suggests operational challenges, requiring strategic adjustments to improve financial health.

Income Statement

SFC Energy's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -3.55%, contrasting with previous annual growth. Gross profit margin remains healthy at 41.39%, but net profit margin has decreased to 2.25% from 6.49% in 2024. EBIT and EBITDA margins have also declined, indicating potential operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.13, indicating conservative leverage. Return on equity has decreased to 2.38% in the TTM, suggesting reduced profitability. The equity ratio remains strong, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow in the TTM and a high free cash flow to net income ratio of 1.65, indicating cash flow issues despite accounting profits. Free cash flow growth is positive at 28.39%, but overall cash generation remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.27M	144.75M	118.15M	85.23M	64.32M	53.22M
Gross Profit	56.88M	59.32M	45.32M	31.41M	22.64M	17.92M
EBITDA	11.27M	21.28M	15.60M	8.58M	-807.74K	-999.74K
Net Income	-369.49K	9.40M	21.08M	2.02M	-5.83M	-5.18M
Balance Sheet
Total Assets	187.20M	194.13M	176.40M	147.17M	87.37M	86.33M
Cash, Cash Equivalents and Short-Term Investments	41.05M	60.49M	59.85M	65.22M	24.95M	31.46M
Total Debt	16.24M	18.14M	16.35M	14.62M	9.49M	12.45M
Total Liabilities	49.53M	54.91M	48.27M	43.73M	37.35M	31.49M
Stockholders Equity	137.95M	139.28M	128.16M	103.44M	50.02M	54.84M
Cash Flow
Free Cash Flow	-16.54M	5.29M	-2.82M	-9.96M	-2.70M	-4.87M
Operating Cash Flow	-12.40M	14.46M	3.58M	-4.76M	1.08M	-595.38K
Investing Cash Flow	-7.34M	-11.08M	-5.48M	-5.20M	-3.87M	-4.28M
Financing Cash Flow	-3.31M	-3.10M	-2.68M	50.18M	-4.05M	15.43M

SFC Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:F3C, the sentiment is Negative. The current price of 13.48 is below the 20-day moving average (MA) of 13.80, above the 50-day MA of 12.96, and below the 200-day MA of 17.58, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 32.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:F3C.

SFC Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAG	75 Outperform	€161.68M	11.30	8.44%	1.82%	-26.69%	-1.95%
TPE	70 Outperform	€463.27M	29.53	10.84%	―	-8.62%	-38.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TTR1	61 Neutral	€239.01M	21.78	10.85%	1.56%	―	―
LPK	56 Neutral	€184.21M	-182.52	-1.16%	―	-1.24%	41.31%
F3C	49 Neutral	€234.52M	-635.85	-0.27%	―	5.15%	-101.58%
RSL2	40 Underperform	€95.96M	-22.82	-5.89%	―	-11.00%	-1.60%